Improve Business Productivity With EDI (Electronic Data Interchange)
It seems as though everything these days is being done electronically. Correspondence is performed through email and businesses communicate with one another by sending forms and bills from one computer to another. The transfer of these documents and other sheets full of data is known as electronic data interchange, or EDI.
There is far more to electronic data interchange than a few emails shot back and forth between businesses. This can be considered a small part of the process, but true EDI refers to far more electronically sent items. Forms that require data figuring such as bills and checks are formatted according to specifications and then sent out along the waves from the sender's computer to the recipient's. DVDs and floppy discs are a form of electronic data interchange, but recent EDI standards prefer to shy away from human interaction at any point of the interchange. The only time that a human should be involved is the sending and reception of the data and some preliminary error correction. Too much human interplay defeats the purpose of EDI's automation.
According to electronic interchange definitions, the parties involved in transmitting and receiving correspondence are referred to as trading partners. The trading partners are responsible for conferring with each other about the forms to be sent and the purpose that they serve. This is one of the few occasions on which humans are involved with data interchange, so communications at this stage employ the use of human readable specifications. Because there is room for error before something is sent, it is up to the partners to be as specific with one another as possible so that correct transmissions are completed. For larger companies, there is likely to be electronic data interchange amongst departments, so the EDI protocol may be specific to each individual department.
One of the benefits of electronic data interchange is that the automation of it corrects many errors. When shipping and billing documents are transmitted in proper EDI format, mistakes are caught by computer programs and fixed before they reach the end user. Both trading partners' computers will reconcile aberrations so a person doesn't have to. Not only do these errors not have the chance to cost anyone money directly, but even more money is saved in the amount of time electronic data interchange frees up. Without the need for someone to scan a ton of papers and forms with a fine tooth comb, his or her efforts can be better spent on more productive tasks. That, and a company does not need to keep a costly position on the payroll to do the job that EDI can take care of.
When it comes down to it, electronic data interchange is a time and money saver. The need to waste hours agonizing over forms and bills is gone. The workforce is able to focus their efforts elsewhere, making life easier for the business.
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